Whalesbook
Washington's opposition centers on claims that Adani Airport Holdings Ltd.'s directive for cargo carriers, including FedEx Corp., to move to the new Navi Mumbai International Airport violates the US-India Air Transport Agreement. The U.S. Department of Transportation officially raised these concerns with India's aviation ministry in March. The DOT warned of potential countermeasures if American carriers are forced to comply with the move, which it views as contravening the pact.
Adani Airport Holdings, which manages both Mumbai's existing airport and the new Navi Mumbai facility, cited ongoing refurbishment at the current site. A company spokesperson explained that building new taxiways would temporarily cut cargo handling capacity by about 25%. Adani proposed a "phased and limited realignment" for some international freighter operations as a solution.
Adani's Plan and US Objections
US officials see the relocation demand as an attempt to fill the new Navi Mumbai airport, rather than just an operational need. This concern is heightened by the Adani Group's expanding control over India's airport infrastructure; the conglomerate already operates eight airports and plans more. FedEx, the only U.S. cargo airline using Mumbai's current airport, approached the DOT after Adani's directive. Relocating from its current base could risk access to critical operating slots, rights specifically protected for U.S. carriers under the bilateral agreement. This has elevated the issue to a government-to-government dispute.
Impact on US-India Relations
The dispute occurs at a sensitive moment for Gautam Adani, who faces a U.S. Justice Department probe. The conflict also risks creating friction in U.S.-India relations, especially just months after the two countries finalized a major trade deal. India's government has reportedly contacted Adani Group to seek a resolution to the impasse.